The Purifloh Ltd (ASX: PO3) share price is following yesterday's 21% gain with another 12% added on today. This means the filtration and purification company's shares are up an astonishing 43% since this time last week.

At Thursday's market close, Purifloh shares finished the day up 12.86% to $1.58.

What's driving Purifloh shares higher?

Investors are buoyant on the Purifloh share price after the company reported its full-year results late Tuesday night.

According to its release, Purifloh advised it continued to develop Free Radical Generator (FRG) technology through Somnio Group.

In addition, Purifloh noted that it commenced bringing back commercialisation activities to Australia, with the launch of two new products. Namely, the Air Conditioning Environmental Remediation Treatment (ACERT) and the Whole of Room Air Purifier (WRAP).

Purifloh also developed relationships with healthcare solutions, Aspen Medical and water treatment company, Osmoflo. Purifloh stated that it sees both of these partners as of significant importance in order to advance its product commercialisation.

Looking at the financial statement, Purifloh achieved a net loss after tax of $3 million, down 31.8% on FY20 ($4.5 million loss).

The $1.4 million improvement came predominantly from a reduction of research and development costs. Global OEM is currently undertaking research and development on behalf of Purifloh.

Furthermore, the company is receiving financial support from its key shareholder, Dilato. During the year, its financier provided a funding facility of $1 million, which $200,000 has recently been drawn down.

Pleasingly, the company is seeking to adjust its relationship with Somnio to reduce expenditure.

Purifloh share price snapshot

Despite this week's euphoric gain, Purifloh shares have lost around 20% in value over the past 12 months. Year to date, the company's shares have moved the other way, hovering around 10% higher.

On valuation grounds, Purifloh commands a market capitalisation of roughly $49 million, with approximately 31 million shares on its registry.

The post Why the Purifloh (ASX:PO3) share price leapt 12% today appeared first on The Motley Fool Australia.

The Purifloh Ltd (ASX: PO3) share price has been frozen after the company's shares entered a trading halt this afternoon. At the time trading was halted, the purification and sterilisation company's shares were sitting at $1.99, up 24.4% on yesterday's close.

What's going on?

Purifloh's shares have been halted after investors drove the company's share price 24% higher today. Additionally, the number of shares exchanged prior to the halt was 5 times greater than the average for a month.

Yesterday, the company posted a media release concerning the use of airborne prevention technology to minimise the risk of COVID-19 transmission in hotel quarantine.

Purifloh director Jon Evans said:

The recent COVID-19 outbreak in Victoria is the result of airborne transmission of the virus from hotel quarantine in Adelaide. While the long-term solution is clearly purpose-built facilities, in the short-term we need to set up those hotels with proven, effective airborne prevention transmission technology.

Furthermore, the press release stated that tests have shown Purifloh's devices can destroy up to 99.9% of airborne contaminants.

While there has been no price-sensitive news out of the company today, the market could be speculating given the renewed attention on hotel quarantine processes this week as the Victorian lockdown rolls on and additional cases continue to be reported.

What next for the Purifloh share price?

Purifloh has yet to provide an additional update regarding its trading halt. At this point in time, the reason for Purifloh share price halt is unknown.

The post Purifloh (ASX:PO3) shares enter trading halt after surging 24% appeared first on The Motley Fool Australia.

The Purifloh Ltd (ASX: PO3) share price is surging today, up 22.7% at the time of writing to $1.86 a share. Purifloh (the company styles its name as PuriflOH) shares closed at $1.52 last Friday, but opened at $1.70 this morning and have climbed even higher to their current level.

Today's move is good news coming out of bad news for Purifloh shareholders. The company's shares are still down a depressing 54.1% so far this year, and down 53.7% since 5 June. Even so, today's move means they are also up ~46.8% since 28 September.

So who is Purifloh? And why are this company's shares going ballistic today?

Who is Purifloh?

Purifloh is a company that makes filtration and purification technology for air, water and surfaces. It does so through ownership of exclusive rights to free radical generation (FRG) technology. The company trades on the ASX, but Purifloh shares are also available through over-the-counter (OTC) markets in the US as of last year. The company pursued this additional avenue for greater availability of capital.

Purifloh's FRG technology works by creating a 'streamer plasma' (sometimes called 'cold plasma'). This plasma, in turn, creates powerful radicals, electrons and UV light that eliminates biological and chemical pollutants. This process delivers only water and ozone as by-products, making it very environmentally friendly.

It is worth noting that, although Purifloh owns the rights to many aspects of this 'streamer plasma' technology, it does not own them in absolute terms. The FRG technology is actually owned and was developed by Somnio Global Holdings – a non-listed, US-based company. Somnio still owns the rights to FRG, but licenses them to Purifloh for the sole purpose of "treatment of all water and fluids, air purification ad disinfection, and biofilm disinfection and facility sterilisation." No use outside these parameters is permitted under the agreement. However, Purifloh does note that it has rights to complementary technology that may be developed by Somnio that may assist in the above uses.

It was only 6 weeks ago that Purifloh was rocked by news of its chair's sudden resignation. That move pulled Purifloh shares to a 2-year low at the time.

Why are Purifloh shares rocketing today?

We can (in my view anyway) put today's moves in the Purifloh share price down to a quarterly update (for the quarter ending 30 September 2020) the company released this morning before market open.

In this update, Purifloh reported that the company has "received an offer" of a finance facility from major shareholder Dilato Holdings Pty Ltd to the tune of $1 million. The company stated that "the facility is available to draw down on an as-needed basis, with a flat interest rate of 10% to be paid on outstanding balances". Purifloh also notes that Dilato has previously provided similar services, including a $2 million facility provided in 2014.

This is a much-needed shot in the arm for Purifloh. The quarterly update also tells us that Purifloh has a current cash balance of $1.013 million in the bank, as of 30 September. This stood at $2.356 million at the end of the prior quarter. The company also tells us that it has just $800,000 of 'estimated cash available for future operating activities' (as of 30 September) as well. That's not a lot of money for a company with a market capitalisation of $58.8 million on current pricing.

Purifloh also told investors that it has finalised the engagement of Dr. Alex Sava to the company. Dr. Sava previously worked at ASX healthcare star Nanosonics Ltd (ASX: NAN).

Finally, Prifloh also told the market that the company is working on a prototype air cleaning system with the ability to destroy COVID-19 viruses:

The Company also plans to utilise the prototypes to test its efficacy to destroy Covid-19 at a suitable and independent Good Practice Laboratory in Australia… it will approach these tests with confidence.

What's next?

Who knows which of these factors got investors' blood boiling today with Purifloh shares, but one or more of them has evidently made the market very excited.

Even so, this is an interesting company to watch. It will be exciting to see if the early indications of an effective prototype in the COVID space bear real fruit over the next months and years.

The post ASX stock of the day: Purifloh (ASX:PO3) shares surge 22% on update appeared first on The Motley Fool Australia.

The Purifloh Ltd (ASX: PO3) share price tumbled to a near two-year low today after it announced the sudden resignation of its chairman.

Shares in the water and air purification technology developer crashed 15.3% to $1.61 in the last hour of trade.

In contrast, the All Ordinaries (Index:^AORD) (ASX:XAO) and the S&P/ASX 200 Index (Index:^AXJO) are trading around breakeven.

Purifloh share price rocked by sudden exit

Companies that are involved in decontamination should be well regarded during the COVID-19 pandemic. But investors got spooked when PuriflOH's chairman Bill Parfet resigned with immediate effect.

"It has been an honour to lead Purifloh over the past 12 months though I now wish to spend more time in retirement with my family," said Mr Parfet.

"I depart with nothing but good wishes and best regards for the Company, my fellow Board Members and the management team. 

"I plan to continue to support them as best I can through continuing with my shareholding and offering guidance where requested."

Can't de-sanitise bad news

Investors haven't taken the news well despite Mr Parfet's explanation. The sudden and immediate resignation of any key executive tends to trigger a share sell-off. Shareholders are selling first and asking questions later.

Management tried to cushion the fall in the PuriflOH share price by stating that Mr Parfet doesn't intend to sell his shares in the company.

Mr Parfet will be replaced by Carl Le Souef, who controls Dilato Holdings Pty Ltd. Dilato is a major shareholder in PuriflOH.

PuriflOH's new chairman

"All shareholders owe a debt of gratitude towards Bill for his investment in PuriflOH, together with his efforts on behalf of the Company," said Mr Le Souef.

"We thank Bill for his support and leadership and wish him the very best in his retirement.

"We plan to release a detailed update of activities in the near future."

Already in strife

One can't rule out a cap raise. The company holds around $2.4 million in the bank, which management stated in its 4C is enough to last it for a little over two quarters.

Our share market operator ASX Ltd (ASX: ASX) suspended PuriflOH at the start of August after it submitted an incomplete 4C, or quarterly cash flow report.

Talk about a bad look!

Little wonder investors are jittery to any bad news.

The post Why the Purifloh (ASX:PO3) share price crashed to a 2-year low today appeared first on The Motley Fool Australia.

The Purifloh Limited (ASX: PO3) share price has soared more than 19% in today's trade, following an update from the company this morning.

What did PuriflOH announce?

PuriflOH released an update this morning informing the market that the company's application to join the OTCQX exchange has been approved. 

Following the approval, PuriflOH will commence trading on the OTCQX on 24 October 2019 under the stock code PUFLF. According to PuriflOH, listing on the OCTQX is a cost-effective method of accessing trading opportunities within the US.

PuriflOH also provided an update on the company's progress with securing eligibility from the Depository Trust and Clearing Corporation (DTC). DTC manages the electronic clearing and settlement of publicly traded companies in the US and over 130 other countries. DTC approval will further allow common shares in PuriflOH to be traded in a more liquid and transparent market.

What does PuriflOH do?

PuriflOH operates in the air and water purification space and holds the exclusive rights to free radical generation (FRG) technology. FRG is a platform technology that allows PuriflOH to develop new products in the key markets of air purification, water treatment and medical sterilisation.

The FRG technology works by creating a 'cold plasma' and powerful radicals that eliminate biological and chemical contaminants and producing only water and ozone as by-products. As a result, FRG can power products that decontaminate and sterilise air, water and other surfaces.

PuriflOH continues to work with original equipment manufacturers (OEMs) in order to commercialise the company's FRG technology. According to PuriflOH, the market leading position of OEMs ensures a rigorous approach to testing and validation of new products.

PuriflOH is also pursuing commercial property opportunities. The company's controlling shareholder Dilato Holding Pty Ltd received approval for a 23 story hotel in the CBD of Melbourne, with PuriflOH air and water treatment systems set to be installed. The company's FRG air purification system is also in the process of conducting trials in India targeting the elimination of airborne tuberculosis.

Earlier this year, the PuriflOH board approved an OTCQX listing, where the company will join the likes of mining giant Fortescue Metals Group LTD (ASX: FMG). The board cited the potential commercialisation of PuriflOH's FRG platform as the basis of listing on the OTCQX, which will allow US-based investors direct access to invest in PuriflOH.  

The PuriflOH share price is up more than 19% for the day, with shares going for $5.25 at the time of writing, bringing the company's share price gain over the past 12 months to more than 970%.

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